PHILADELPHIA — A Pennsylvania federal judge has refused to dismiss a False Claims Act action accusing Medtronic Inc. of paying kickbacks to healthcare providers, ruling that while the allegations were already publicly disclosed, the relator is an original source because she detailed the alleged fraudulent scheme.

On June 4, Judge Edward G. Smith of the U.S. District Court for the Eastern District of Pennsylvania found the extensive details provided by the relator significantly added to the essential factual background possessed by the government.

Relator Cathleen Forney alleges that while working for Medtronic, she observed the company providing free services ...